YREKA – At its regular meeting on July 18, the Yreka City Council directed staff to defer the imposition of water and wastewater rate hikes and considered lowering water set-up fees. In addition, utility billing policy changes may be on the horizon, as council members began a dialogue about ways to minimize the costs of utility operations.

The city council had previously considered imposing water and wastewater rate increases by approximately 2.5% each for the next five fiscal years. This would have come at the heels of the last upturn in the previous five-year rate hike. They also pondered the possibility of lowering the one-time water set-up fee from $100 to $50.

However, during the June council meeting, mayor David Simmen suggested postponing the hikes one year, and he directed city staff to identify methods of minimizing utility costs in order to lighten the burden on ratepayers.

Yreka city manager Steve Baker and staff did their homework and at the July 18 meeting, they identified inefficient administrative practices in terms of utility billing.

“A small group of utility customers take up a lot of staff time,” said Baker.

He said multi-dwelling units, such as apartment buildings, are an administrative challenge for the city.

“Tenant accounts make up 90% of delinquencies,” said Baker, adding that staff spends a lot of time at the counter at city hall handling these accounts and arranging water shut-offs.

Liz Casson, Yreka city clerk, said some tenant water accounts are shut off and turned back on repeatedly. A bill’s late fee is $25 and the disconnect fee is $50.

Baker said an option is to change the city’s policy, so that water and wastewater utility accounts remain in landlords’ names. Under this system, the landlord would be responsible for paying the water and wastewater utility bill, and it would be his or her responsibility to bill the tenant.

He explained that his policy change would lower administrative costs associated with utility billing, and he noted that staff is researching conservation methods and wastewater operation efficiency improvements that will in turn minimize utility costs for customers.

Simmen commented that he would like to see the city improve its low-income rate reduction program for those who live on a fixed income.

Council member Rory McNeil raised the issue of the $100 one-time water set-up fee, which the council is considering suspending by 50% so new customers will only be billed $50.

Rhetta Hogan, Yreka finance director, pointed out the $100 figure is what it costs in staff time and resources to set up a new water account.

Casson commented that customers who have delinquent accounts are not subject to paying this $100 set-up fee again to have their water turned back on following a shut-off.

Page 2 of 2 - Baker stated that if landlords keep water utility bills in their names, the $100 set-up fee would be paid less often, and staff costs to set up new accounts would go down.

“We would not be spending so much of our time on tenants,” he said.

McNeil and council member John Mercier commented that they have heard numerous citizens complain about the $100 water fee.

“That is what I hear the most as far as complaints,” McNeil said.

Ultimately, Baker said he would prepare a resolution that suspends half of the water set-up fee for new customers, effective January 2014, for consideration at a future meeting. In addition, he also stated that staff will raise the possibility of policy changes regarding utility billing.